Cheniere Energy Partners LP CQP

Morningstar Rating
$49.06 +0.06 (0.12%)
View Full Chart

Company Report

Cheniere Energy Partners Has a Sizable Opportunity With the New Sabine Pass Expansion

Cheniere is well positioned to be the exporter of the incremental liquefied natural gas supplied to the global market over the next few years, particularly as demand ramps up from China and India, while the EU declines. We expect Cheniere to have about 45 million metric tons per year LNG capacity online in 2022, 55 million tons in 2026, and 58 million tons in 2028. We expect the bulk of China's LNG demand growth to be met by US gas supply, given the United States' ability to increase gas and therefore LNG supply significantly.

Price vs Fair Value

CQP is trading at a 56% premium.
Price
$49.06
Fair Value
$12.00
Uncertainty
Medium
1-Star Price
$63.30
5-Star Price
$82.30
Economic Moat
Mjdr
Capital Allocation
Xkpntvt

Bulls Say, Bears Say

Bulls

At $600-$700 per ton for incremental capacity expansion projects, Cheniere has some of the lowest-cost LNG projects on the global cost curve, well below the US average of $800 per ton and similar targets by Australian LNG producers.

Bears

If China changes its government policy on higher natural gas consumption, this would likely mean a decline in demand for US LNG.

News

Trading Information

Previous Close Price
$49.00
Day Range
$48.0949.29
52-Week Range
$45.5162.34
Bid/Ask
$19.63 / $54.00
Market Cap
$23.75 Bil
Volume/Avg
65,114 / 137,008

Key Statistics

Price/Earnings (Normalized)
13.93
Price/Sales
2.64
Dividend Yield (Trailing)
7.51%
Dividend Yield (Forward)
7.51%
Total Yield
7.51%

Company Profile

Cheniere Energy Partners is the direct owner of the Sabine Pass LNG terminals as well as regasification facilities. It also owns the Creole Trail Pipeline, which connects the terminal to third-party gas suppliers. Cheniere Partners shares in the marketing fees generated by Cheniere Marketing from Sabine Pass marketed gas volumes.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Value
Total Number of Employees
0

Competitors

Valuation

Metric
CQP
WMB
ET
Price/Earnings (Normalized)
13.9324.3413.16
Price/Book Value
4.741.78
Price/Sales
2.645.570.63
Price/Cash Flow
8.069.694.99
Price/Earnings
CQP
WMB
ET

Financial Strength

Metric
CQP
WMB
ET
Quick Ratio
0.410.310.88
Current Ratio
0.650.451.14
Interest Coverage
4.593.823.40
Quick Ratio
CQP
WMB
ET

Profitability

Metric
CQP
WMB
ET
Return on Assets (Normalized)
13.12%4.84%5.82%
Return on Equity (Normalized)
20.60%22.54%
Return on Invested Capital (Normalized)
19.50%8.52%9.54%
Return on Assets
CQP
WMB
ET

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